МІНІСТЕРСТВО ОСВІТИ І НАУКИ УКРАЇНИ ЗАХІДНОУКРАЇНСЬКИЙ

НАЦІОНАЛЬНИЙ УНІВЕРСИТЕТ
Кафедра іноземних мов та
інформаційно-комунікаційних технологій

КОМПЛЕКСНЕ ПРАКТИЧНЕ ІНДИВІДУАЛЬНЕ

ЗАВДАННЯ З ДИСЦИПЛІНИ ІНОЗЕМНА МОВА (АНГЛІЙСЬКА) НА ТЕМУ:

“Time Management in Business”

What is Business Competition?
Business competition is the race or rivalry among business competitors that are
competing in the same niche. That means business competition is the contest between
organizations that provide similar products or services or that target the same
audience of consumers. Businesses compete to convert and retain customers, increase
revenue and gain more market share. The purpose of competing with one another is
to increase the revenue of the business by increasing the sales and market share. If
you’re in the business market, then you should be familiar with the strength and
weaknesses of your own business, and also with competitors as well.

The thing about business competition is that it always exists in the business market;
you won’t find any field of business where there isn’t any competition. However,
some fields are less competitive and the others are more; but business competition in
the market is always there.

A high amount of business competition may be a sign of a healthy, profitable

marketplace and often enhances the overall quality of available products and services
by encouraging organizations to improve their operations, fulfill the needs of their
customers and develop their client relationships.
Healthy completion is often a great way for organizations to motivate themselves and
their employees to strive for excellence. There are several types of business
competition, and each has an important part in increasing customer satisfaction,
promoting innovation and revealing marketplace advantages. As a marketing, sales or
advertising professional, understanding competition in business may help you
improve your efforts and maximize your success. In this work, we define business
competition, discuss the types and benefits of business competition and offer a list of
tips to help you promote healthy business competition.

Importance of Competition in Business

Competition is the rivalry between these similar businesses aiming to maximise
profitability. It is present in all profitable markets, where businesses compete on
price, quality, reputation, brand name, etc. Competition can be profitable for
businesses, as it encourages them to optimize their resources and strategies.

Competition is also important as it boosts innovation in the market. Firms often race
to be the first ones to introduce new technology into the marketplace. Innovation in
the industry often leads to better products and more efficient production and use of
resources. Innovation also leads to operational and process optimization, such as
cheaper or quicker production.
Competition can help businesses identify consumer needs and develop new products
or services that meet these needs more efficiently than competitors. It can also help
businesses analyze the strengths and weaknesses of competitors, which can
therefore be compared with the business's strengths and weaknesses. This can help a
lot with overall business strategy.

Competition and Consumers

Competition is also beneficial for consumers. As we know, competition often results
in innovation. This is also beneficial for consumers, as they get newer, better quality
products for better prices. Consumers are also more willing to spend on better quality
products, which not only benefits the firm but the economy as a whole. Innovation
helps drive economic growth, which increases living standards.
Additionally, as competition leads to a more efficient process - lowering the
production and operating costs of businesses - consumers also indirectly save money,
as lower costs for businesses means lower prices for customers.

Types of Competition in Business

Also called market competition, business competition is usually a fact in a profitable
market – many players produce similar products, sell through similar channels, and
even target the same audience. This competition, however, can be classified into three
types:
1) Direct Competition
Direct competitors are vendors that sell the same products to the same audience and
compete for the same potential market. Direct competition is something which comes
to our mind; when we talk about business or competition. Competition could be about
anything which your competitor would target; price, service, particular features, sale
point, etc.
An excellent example of direct competitors is Coca-Cola and Pepsi.
The two companies operate in the same industry, offer very similar products
(caffeinated soft drinks), satisfy the same need and target similar customer
segments. The two companies even use similar channels of distribution (vending
machines, grocery shops, etc.).
So we can tell if two businesses are in direct competition with each other if:
 Operate in the same industry
 Offer similar products
 Satisfy the same need
 Use the same channels of distribution
 Target the same audience
2) Indirect Competition

Indirect competitors are businesses that sell products that are not the same as yours
but still operate in the same industry and satisfy the same consumer need.
An excellent example of direct competitors is McDonald's and KFC.
The two companies still operate in the same industry (fast food) and satisfy a similar
consumer need (people who have busy lifestyles and are looking for a quick meal),
however, the two companies are known for two different items - McDonald's for
burgers and KFC for chicken.
So we can tell if two businesses are in direct competition with each other if:
 Operate in the same industry
 Target the same audience
 Satisfy the same need

3) Replacement Competition
Replacement competitors are brands and businesses that have the ability to
completely replace existing organizations by producing new products or services that
better satisfy the needs of their target audience. For example, mobile phone
manufactures eventually replaced manufacturers of landline phones because they
fulfilled the same need in an improved, more convenient way. You can tell if an
organization is a replacement competition if it offers an existing product or service in
a new, innovative way the more successfully satisfies the needs of consumers.
For instance, a written book and the video game are two products and their target
market is 12 years old kids. They both are using the same intellectual creative
resources, but the product is different.

The smartphone was a replacement competitor of digital cameras. Even though these
two products had different uses, smartphones had the ability to provide a totally new
solution to the existing photography need of the customers.

As a business person, you must understand the needs and choices of your customers
what they want; what competitors could target. The same way you should target those
needs first; and what could be replaced with something new and attractive to capture
the market share. Evaluate it, and target.

Importance Of Business Competition

In contrast to what it seems, healthy competition is almost as important as healthy

demand for a business.

 It makes the business dig deep into the actual needs, wants, and demands of the
customers and makes it more interested in serving them better than other
players.
 It makes the business realize its actual strengths and weaknesses.
 It makes the business focus on more than just the offering; in marketing,
branding, customer service, and customer retention.
 It keeps the companies on their toes and induces a habit of constantly
innovating and improving the product.
 It educates the business about the intricacies of how the usual market works,
how to position the brand, produce efficiently, and market sell effectively.
 It provides customers with options to choose from while shopping.

Benefits of competition in business

Competition in business often provides opportunities for brands and businesses to

improve the performance of their products and services. Additional benefits of
business competition may include:

Addressing the needs of customers

Often, business competition motivates brands and businesses to fulfill their

customer's needs more effectively than their competitors. This promotes
organizations to develop their understanding of the needs of their target audience and
tailor their offerings to fulfill satisfy their needs. The results of brands and businesses
that focus on fulfilling customer needs include higher quality products, the increased
value of services and enhanced customer satisfaction.

Analyzing strengths and weaknesses

Business competition may encourage organizations to evaluate their strengths and
weaknesses and optimize their strategies based on these findings. This may allow
brands and businesses to maximize the talents of their teams and departments, make
informed decisions about their marketing and sales strategies and tailor their offerings
according to their strengths.

Increasing demand

Business competition is an effective way to increase the demand for a product or

service. As more companies invest in their marketing and advertising efforts,
consumer demand for their products and services may increase as brand awareness
continues to grow. This is beneficial to each competitor involved and may result in
increased revenue, higher customer acquisition and retention.

Encouraging innovation

In order to gain an advantage in the marketplace, business competition may

encourage organizations to innovate their strategies and improve their products or
services in creative, revolutionary ways. This is an important contribution to the
continued improvement of goods and services, the advancement of technology
products and services and adapting to the changing needs of consumers.

Revealing competitive advantages

Brands and businesses often track and analyze their competitors' performances to
gain insight into their business strategy. By studying their competitors' tactics, brands
and businesses may be able to reveal their own advantages in the market. This may
help organizations better understand the aspects of their business that differentiate
them from the competition, and using this information, they may develop strategies
that contribute to their success.

Promoting business development

Continued business development may be an important factor in long-term success.

Business competition often challenges brands and businesses to continually improve
their procedures, analyze the success of their efforts and develop new methods of
achieving their objectives. This may help organizations seek continued business
development and could contribute to their long-term success.

Awareness
More competition in the market about a particular product would spread more
awareness. The competition will make the customers more informed. Sale of the
product would also increase because of the demand created by the information and
awareness.
Price
The price of the product is a very important factor to attract new customers.
Competition forces competitors toward economies of scale; which as a result lower
the prices of the product.
Choice
Every competitor would try to differentiate itself from the crow of the product by
adding some value to it. Consequently, customers would have more choices to choose
from in the market.

Quality
Many customers are quality conscious when they have many choices to choose a
product. Then they would always choose a product that is more efficient than the rest.
Competition would also compel competitors to put more focus on quality.

Disadvantages of Competition in Business

There are many advantages and benefits for the customers, but it has some
disadvantages as well. Such as;

Reduces the business’s market share

A rise in competition makes the business share its market with other players. This is
often unwelcomed by the existing businesses.

Puts pressure on business

Competitions puts much pressure on businesses to up their game and results in many
of them failing because of their inability to compete with the big market players.

Employees feel pressurized

Increased competition adds much pressure to employees to perform well and think
out of the box. Many employees can’t cope with this increased pressure.
Makes business spend unnecessarily
Competition often makes a business overspend on marketing and other promotional
strategies to woo the customers, business partners, and employees. This adds to the
expense and is often unnecessary.

Customers get confused

Customers are often confused by a large number of similar products available in the
market. Competition makes them doubt their choice and often puzzles them.

Tips for promoting healthy business competition

Promoting healthy business competition may help you stimulate the growth and
development of your organization, increase the health of the market and promote the
success of your products and services. Consider following these tips to promote
healthy business competition:

Understand your competition

Conducting market research is a great way to understand your competitor's strategies
and success. Understanding the effectiveness of their techniques may help you make
informed decisions about your own strategies. This may result in competitors
adjusting their methods in order to be most effective, increasing healthy market
competition and promoting continuous business development.

Make positive connections

Partnerships are a great way to maximize the benefits of business competition.

Similar brands or businesses may enter into partnerships to strengthen their customer
outreach, connect with each other's target audiences and better fulfill the needs of
their customers. Mutually beneficial partnerships may help organizations more
successfully fulfill the needs of their customers, expand their audience bases and
enhance positive brand perception.

Demonstrate your uniqueness

Highlighting the ways your products or services differ from your competitors is an
effective way to promote business competition. Consider integrating messaging about
how your products or services exceed the expectations of competitor offerings into
your marketing and advertising campaigns. Demonstrating how your offerings more
successfully fulfill the needs of your target audience may encourage competing
businesses to improve their offerings and promote continuous improvement in the
marketplace.

How to manage competition in business

If you work in marketing, business development or management, it's important to

understand how to use competition to grow the company. Here are the steps to take to
ensure the business remains competitive with other firms in the market:

1. Research other firms in your market

To be competitive in your market requires understanding the differences between the

company and other firms. This involves comparing the details of the business models
and the differences between its products from the consumer's perspective.

Learn about the other businesses or firms in your market to better compete with them
in the future. It might be beneficial to perform a competitor analysis on some of your
most significant competitors. If your competitors make a similar product as you using
more efficient production processes, you benefit from analyzing how you can adjust
the business model to achieve a similar level of profitability. If a competitor offers
lower prices than you, you might attempt to sell at their price point, or you might
justify your price with a superior product.

2. Profile your ideal consumer

Data-driven marketing enables companies to create increasingly specific consumer
profiles. Therefore, many organizations' successes depend on marketing efficiently to
a targeted audience rather than broadly. To learn about your ideal consumer, consider
conducting surveys, hosting focus groups or exploring social media to see what
characteristics define the people who buy products like yours. Once you know who's
most likely to purchase your unique goods or services, you can structure your
marketing efforts and branding accordingly.

For example, a furniture company might recognize that its designs appeal to college-
educated people in their 20s and 30s. If the company wants to embrace this
demographic's values, it might emphasize using responsibly sourced wood so that its
products align even better with its core audience.

3. Define the brand

When comparing products, consumers often make assumptions depending on their

understanding of the brands that make them. This process depends on consumers
responding to the messages brands advertise and developing strong associations with
them. For instance, many winter coats keep people warm, but when buying one,
consumers might first shop with brands that match their interests like snowboarding,
fashion or hiking.

Try to align the brand image with your target demographic's values and interests.
Doing so can help you market effectively and develop meaningful connections with
your customers. The more distinct the brand the more you might distinguish the
company from its competitors. You could also limit your exposure to competition by
representing identities and groups that other companies may ignore.

4. Emphasize your difference

Comparison largely drives the purchasing process. Consumers compare price,

product quality and customer experience to decide which business to support. To
compete successfully, you benefit from making it easy for shoppers to understand
what's unique about your good or service. You might review your product packaging,
sales tactics or marketing efforts to confirm your product's advantages are clear, or
you might recognize a need to improve your good or service so that it outperforms
competitors' offerings. Consider what makes the business different from the
competition and emphasize this to customers.

5. Focus on customer service and experience

When consumers have an excellent shopping experience or receive great customer

service, they often become loyal to a company. Since repeat customers are often
critical to businesses' bottom line, cultivating them enables you to earn and keep
more market share. If consumers know they can trust you to treat them well, they
may choose you over competitors and encourage people in their social networks to do
the same. Ultimately, direct the company's efforts toward superior customer service
and experience to encourage customers to make repeat purchases.

6. Continue to develop your product

Businesses often introduce products or services that succeed at first but become less
valuable as technology advances or as other competitors offer improved products.
Counteracting these realities of competition requires you to continue developing your
product so that you can build on your original innovation and create new ones.
Striving to give consumers a better product also reflects well on the brand, showing
its commitment to meeting customer needs as the company receives feedback and
applies new insights. Look for ways to develop your product offerings to show
customers your continuous ability to meet their needs.

7. Emphasize employee satisfaction

All the processes involved in remaining competitive, such as research, marketing and
customer service, depend on talented individuals dedicating their skills to the
company. When your team remains stable and grows smoothly, you can focus on
innovating and refining your operation instead of constantly recruiting and training
new hires. Reducing churn and nurturing a positive work environment could help an
organization excel against its competitors.

It might be beneficial for managers to create a safe and enjoyable workplace where
team members feel they can advance their careers. By keeping employees satisfied,
you also lessen the likelihood of them leaving and transferring their value to your
competitors. Some businesses choose to ask employees to sign a noncompete
agreement, which legally obligates them to keep company information private if they
start work for a competitor.

Business Competition Examples

Here we will look at some of the biggest rivals in the history of brands and businesses

Coke vs. Pepsi

When you want to buy a soft drink and visit the grocery store; either you choose
Coke or Pepsi. Their taste is almost the same, but you choose one. There are decades
of marketing work behind it by both of these companies.

During the ‘‘Cola-War’’ in the 1980s, Pepsi & Coca-Cola experimented and
introduced a new taste in the market, Pepsi pulled the whole market share towards it
by winning the customers approval. Nearly 400,000 sent a complaint letter to Coca-
Cola against the new taste; the company apologized to its customers and revert to its
classic taste.

McDonald’s Vs. Burger King

McDonald’s and Burger King, both of these brands offer burgers to their customers.
The question is what differentiates them and make customers to choose one. It started
in the 1950s and 60s, a very famous period of fast food and cars, McDonald was
selling its burger at 15 cents and Burger King came and started selling it at 37 cents.

McDonald’s has the price advantage, but better quality factor forced the marketers
and companies to think about the quality of the product. However, McDonald
launched its own Big Mac soon after this. Whoever won the burger war between both
of these brands; customers would always choose the healthier product regardless of
the price.

UPS Vs. FedEx

UPS and FEDEX both are in the package delivery service industry, with the rise in e-
commerce and online shopping, delivery service is getting a very important business
like foot soldiers. UPS handles all the on-ground vehicles and transportation. FedEx,
on the other hand, controls and operates world large cargo airline fleeting.

UPS manages all the shipments and transportation by itself, although it’s costly but
it’s become a major strength of the company. FedEx relies on intermediaries and
hires other third party contractor. However, UPS has a market worth of 94 billion US
dollars, FEDEX has a market share worth 51 billion US dollars.